FHFA extends forbearance, the hottest U.S. housing markets revealed and more of the week's top news
February 12, 2021 5:45 PM
kbose - stock.adobe.com
The 12 hottest housing markets in 2021 revealed
With the combination of extremely low inventory and interest rates holding near historic lows, forecasts show 2021 shaping up to be a strong year of originations with increased emphasis on buying.
These conditions createdrampant bidding wars and soaring profits for sellers in the past year, while the shift to working remotely caused buyers to flood markets where they could get more space for their money. With home price growth expected to taper after surging in 2020, some markets will stand out above the rest.
As 2021 shapes up to be a robust year for mortgage volumes, local lenders discuss the 12 metro areas that are expected to get the most interest from buyers, according to Zillow.
Read the full storyhere .
These conditions created
As 2021 shapes up to be a robust year for mortgage volumes, local lenders discuss the 12 metro areas that are expected to get the most interest from buyers, according to Zillow.
Read the full story
Andrew Harrer/Bloomberg
FHFA allows borrowers to prolong forbearance plans
The Federal Housing Finance Agency is allowing borrowers with loans backed by Fannie Mae and Freddie Mac to request an additional three months of forbearance, the agency said Tuesday.
As of Feb. 28, borrowers who are in forbearance plans will be permitted to request an additional three-month extension, covering up to 15 months of mortgage payments overall for borrowers with Fannie and Freddie-supported loans, the FHFA said.
Read fully storyhere .
As of Feb. 28, borrowers who are in forbearance plans will be permitted to request an additional three-month extension, covering up to 15 months of mortgage payments overall for borrowers with Fannie and Freddie-supported loans, the FHFA said.
Read fully story
Prolonged plateau in mortgage rates adds to signs of market shift
The lack of change in the average fixed rate for a mortgage this week added to evidence that refinancing opportunities are contracting slightly as economic signals point to a tepid recovery.
At 2.73% the 30-year Freddie Mac rate reprised its number fromthe previous week and was down from 3.47% a year ago following the release of a Consumer Price Index number that inched upward 0.3% on a seasonally-adjusted basis on Wednesday.
Because the CPI number only inched up slightly, it improved the odds that government officials will keep putting downward pressure on rates rather than tapering it. Stimulus has included federal purchases of bonds tied to long-term rates.
Read full storyhere .
At 2.73% the 30-year Freddie Mac rate reprised its number from
Because the CPI number only inched up slightly, it improved the odds that government officials will keep putting downward pressure on rates rather than tapering it. Stimulus has included federal purchases of bonds tied to long-term rates.
Read full story
LoanDepot shares soar after slashing the IPO’s price and size
LoanDepot became the fourth out of four mortgage company initial public offerings launched in recent months to downsize, but that did not deter investors from driving the price straight up.
The offering ultimately consisted of 3.85 million shares at $14 per share; with an underwriters' option to purchase an additional 577,500 shares.
The stock quickly shot up with a high of $17.77 per share when it started trading on Thursday morning; by 1:30 p.m. it backed down to $17.05. But in the last half hour of trading the price leaped to a high for the day of $23.49 before closing at $22.09.
Read full storyhere .
The offering ultimately consisted of 3.85 million shares at $14 per share; with an underwriters' option to purchase an additional 577,500 shares.
The stock quickly shot up with a high of $17.77 per share when it started trading on Thursday morning; by 1:30 p.m. it backed down to $17.05. But in the last half hour of trading the price leaped to a high for the day of $23.49 before closing at $22.09.
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Nonbank stock performance has New Residential squeamish about its NewRez IPO
The uneven stock performance from nonbank lenders that have recently gone public has given pause to New Residential Investment, which was considering its own IPO for the New Rez division.
"We think that it will create more value for shareholders by separating the company and bringing it into the public markets," said Michael Nierenberg, its chairman, CEO and president, on its fourth quarter conference call. "But as you've seen from some of the recent attempts…some of them have gone OK; others have not gone as well."
A confidential registration statement was filed in November. If there was to be a public offering, the two companies would still be intertwined as New Residential would likely maintain a substantial stake in a publicly-traded NewRez, he said.
Read the full storyhere .
"We think that it will create more value for shareholders by separating the company and bringing it into the public markets," said Michael Nierenberg, its chairman, CEO and president, on its fourth quarter conference call. "But as you've seen from some of the recent attempts…some of them have gone OK; others have not gone as well."
A confidential registration statement was filed in November. If there was to be a public offering, the two companies would still be intertwined as New Residential would likely maintain a substantial stake in a publicly-traded NewRez, he said.
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Freddie Mac's 2020 earnings rose as it delivered 'record liquidity'
Freddie Mac touted its performance supporting the markets during the pandemic and a year of record originations in its earnings call, announcing also that it nearly doubled its net worth thanks to the new capital requirements from the FHFA.
The government-sponsored enterprise reported fourth quarter net income of $2.9 billion, compared with $2.5 billionin the third quarter and $2.6 billion for the fourth quarter of 2019.
For the full year of 2020, Freddie Mac earned $7.3 billion, slightly higher than the $7.2 billionnet income for 2019.
Read the full storyhere .
The government-sponsored enterprise reported fourth quarter net income of $2.9 billion, compared with $2.5 billion
For the full year of 2020, Freddie Mac earned $7.3 billion, slightly higher than the $7.2 billion
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Fannie Mae’s 2020 earnings fall due to COVID-related credit expenses
Fannie Mae's full-year net income fell, but linked-quarter profits climbed starting in the spring thanks to low interest rates and the resulting boom in refinance activity.
The government-sponsored enterprise reported a fourth quarter net income of $4.6 billion, up from $4.2 billionin the third quarter and $4.4 billion one year earlier. The government-sponsored enterprise logged $11.8 billion in net income in 2020, a drop from $14.2 billion in 2019 and $16 billion in 2018.
The annual decline was primarily due to nearly $900 million of credit-related expenses incurred as a result of the pandemic, which compared with $3.5 billion of credit-related income in 2019, Fannie’s chief financial officer Celeste Mellet Brown said on the earnings call.
Read the full storyhere .
The government-sponsored enterprise reported a fourth quarter net income of $4.6 billion, up from $4.2 billion
The annual decline was primarily due to nearly $900 million of credit-related expenses incurred as a result of the pandemic, which compared with $3.5 billion of credit-related income in 2019, Fannie’s chief financial officer Celeste Mellet Brown said on the earnings call.
Read the full story
Prolonged plateau in mortgage rates adds to signs of market shift
The lack of change in the average fixed rate for a mortgage this week added to evidence that refinancing opportunities are contracting slightly as economic signals point to a tepid recovery.
At 2.73% the 30-year Freddie Mac rate reprised its number fromthe previous week and was down from 3.47% a year ago following the release of a Consumer Price Index number that inched upward 0.3% on a seasonally-adjusted basis on Wednesday.
Because the CPI number only inched up slightly, it improved the odds that government officials will keep putting downward pressure on rates rather than tapering it. Stimulus has included federal purchases of bonds tied to long-term rates.
Read the full storyhere .
At 2.73% the 30-year Freddie Mac rate reprised its number from
Because the CPI number only inched up slightly, it improved the odds that government officials will keep putting downward pressure on rates rather than tapering it. Stimulus has included federal purchases of bonds tied to long-term rates.
Read the full story
Acting CFPB head calls out industry for slow complaint response times
The new interim leader of the Consumer Financial Protection Bureau pledged to take action against firms that are slow to respond to customer complaints during the pandemic.
In ablog post , acting CFPB Director Dave Uejio expressed concern that financial institutions have dragged their feet in addressing complaints, and said the agency was working on an upcoming report highlighting response issues.
Read full storyhere .
In a
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Mortgage insurers log fewer delinquencies but pace slows at legacies
While all four standalone private mortgage insurers reported month-to-month reductions in their delinquent loan inventory, the pace of improvement at the two legacy companies is lagging.
That is likely reflective of the pattern of government-sponsored enterprise mortgages in forbearance, which continued to drop, but also at a slower rate, according to Black Knight. Between the weeks of Jan. 5 and Feb. 2 the number declined by 19,000 units, bringing the total to 913,000 loans. But between Dec. 8 and Jan. 5, GSE mortgages in forbearance fell by 33,000.
Read the full storyhere .
That is likely reflective of the pattern of government-sponsored enterprise mortgages in forbearance, which continued to drop, but also at a slower rate, according to Black Knight. Between the weeks of Jan. 5 and Feb. 2 the number declined by 19,000 units, bringing the total to 913,000 loans. But between Dec. 8 and Jan. 5, GSE mortgages in forbearance fell by 33,000.
Read the full story
More than 1 million homeowners feared imminent foreclosure in December
Many borrowers feared they’d be forced to move in the fourth quarter, according to a recent survey that reveals a lack of awareness or access to the pandemic-related government protections in place.
As the end of 2020 approached, approximately 1.2 million borrowers were afraid they would be foreclosed on within 30 days, according to new data in a Research Institute for Housing America report backed by the Mortgage Bankers Association.
Read the full storyhere .
As the end of 2020 approached, approximately 1.2 million borrowers were afraid they would be foreclosed on within 30 days, according to new data in a Research Institute for Housing America report backed by the Mortgage Bankers Association.
Read the full story
Mortgage applications down as rising rates suppress activity
Mortgage application volume declined on a week-to-week basis as interest rates rising to their highest level since November inhibited consumer activity, the Mortgage Bankers Association said.
The MBA's Market Composite Index was down 4.1% on a seasonally adjusted basis and 3% unadjusted for the week ended Feb. 5 compared withthe prior week.
"Treasury rates have been driven higher by expectations of faster economic growth as the COVID-19 vaccine rollout continues," Joel Kan, the MBA's associate vice president of economic and industry forecasting.
Read the full storyhere .
The MBA's Market Composite Index was down 4.1% on a seasonally adjusted basis and 3% unadjusted for the week ended Feb. 5 compared with
"Treasury rates have been driven higher by expectations of faster economic growth as the COVID-19 vaccine rollout continues," Joel Kan, the MBA's associate vice president of economic and industry forecasting.
Read the full story
Kelly Purcell, digital mortgage pioneer, dies at 58
Kelly Purcell, an advocate for the digital mortgage movement, died on Feb. 6 at the age of 58.
Purcell was a pioneer of electronic signature technology, co-founding SignOnline in 1999, a year before the federal legalization of e-signatures. Since October 2018, Purcell served as NotaryCam’s EVP of marketing and business development.
SignOnline — later renamed eSignSystems — still lives on. It was acquired by Wave Systems in 2001 and againby DocMagic in 2014. The company’s survival is a testament to Purcell’s vision and tenacity, friends and industry veterans said. She committed herself to bettering an industry ripe for innovation and refused to quit, they added.
Read the full storyhere .
Purcell was a pioneer of electronic signature technology, co-founding SignOnline in 1999, a year before the federal legalization of e-signatures. Since October 2018, Purcell served as NotaryCam’s EVP of marketing and business development.
SignOnline — later renamed eSignSystems — still lives on. It was acquired by Wave Systems in 2001 and again
Read the full story
Commercial mortgage lending expected to see slight recovery in 2021
Commercial and multifamily mortgage origination volume should recover somewhat in 2021, the Mortgage Bankers Association said.
The trade group forecasts $486 billion in loans secured by income producing properties will be originated this year, compared with an estimated $440 billion in 2020, a year in which commercial real estate was heavily impacted by COVID-19, especiallylodging and retail .
"The economic rebound MBA anticipates in the second half of the year should bring greater stability to the markets, but with continued differentiation by property type," Jamie Woodwell, vice president for commercial real estate research, said in a press release. "Much of the path forward will depend on the virus and our confidence and ability to move past it."
Read the full storyhere .
The trade group forecasts $486 billion in loans secured by income producing properties will be originated this year, compared with an estimated $440 billion in 2020, a year in which commercial real estate was heavily impacted by COVID-19, especially
"The economic rebound MBA anticipates in the second half of the year should bring greater stability to the markets, but with continued differentiation by property type," Jamie Woodwell, vice president for commercial real estate research, said in a press release. "Much of the path forward will depend on the virus and our confidence and ability to move past it."
Read the full story
Lenders discuss how they plan to shorten loan timelines ahead of spring
The industry average for the application-to-funding process was 56 days in December, up from 51 a year ago and 49 the previous month, according to ICE Mortgage Technology.
Purchase loans that take longer than 90 days do measurably hurt customer referrals, according to Garth Graham, senior partner at the Stratmor Group. When these rose to 7% in the fourth quarter of 2020 from 5% 2Q20, net promoter scores dropped from 73 to 67, Stratmor found.
That’s why lenders are investigating where an otherwise speedy pre-closing loan process is getting jammed up. They discuss their strategies for shortening timelines with NMN.
Read the full storyhere .
Purchase loans that take longer than 90 days do measurably hurt customer referrals, according to Garth Graham, senior partner at the Stratmor Group. When these rose to 7% in the fourth quarter of 2020 from 5% 2Q20, net promoter scores dropped from 73 to 67, Stratmor found.
That’s why lenders are investigating where an otherwise speedy pre-closing loan process is getting jammed up. They discuss their strategies for shortening timelines with NMN.
Read the full story
